As a small business owner, you know the struggles of keeping the business going. You wear a lot of hats, put in the long hours, and prioritize your company’s success above all else. Sometimes, this dedication translates to taking a backseat with your own salary, relying on sporadic owner draws instead of a consistent, market-rate wage.
If this is you, you’re in good company – many small business owners take a below-market salary. Taking it one step further, a 2022 survey by Wave Financial found that 26% of small business owners took no salary at all.
This could seem like a savvy way to maximize profits, but it’s probably creating blind spots and hurting your business in the long run.
Sharon Sheekey, our Accounting Division Director, discusses three ways that underpaying yourself is hurting your business on the Small Biz Flash podcast.
You can listen to it here or watch it on YouTube: